Home equity loans can be used to consolidate account balances from multiple credit cards or installment loans into a single loan while offering the added benefit of consolidating multiple payments into a single monthly payment. Using home equity for debt consolidation can be beneficial if the repayment period for paying off the home equity loan is shorter than it would be for your existing debts, or if the interest paid over the repayment period is less than what you would pay without consolidating your debt.
Consolidating Debt with Home Equity
Consolidating Debt with Home Equity
Debt
Total Debt
$ 35,000
Existing Payments
Monthly Payment
$ 700
Months to Pay Off
87
Loan or LOC Payments
Interest-only Payment
N/A
Monthly Payment
$ 369
Months to Pay Off
120
The consolidation loan will result in a payoff period of 33 more month(s) than the estimated payoff period for your current debts. Over the repayment term, you will pay $4,398 less in total interest with the consolidation loan.